How to have money gratitude

Good Morning CT at Nine

(WTNH) — Financial professional Roger Cowen explains how being thankful relates to our money.

BE THANKFUL FOR COMPOUNDING INTEREST 

  • Compound interest is a saver’s best friend. It plays a huge part in reaching your retirement goals.
  • In order to capitalize on compound interest, you need to keep the money in the account and resist the temptation to withdraw. 
  • On the flip side, if you rack up debt, compound interest will add up, making it difficult to pay it off.

BE THANKFUL FOR ROTH CONVERSIONS 

  • Converting a traditional IRA to a Roth IRA has the potential to lessen your tax burden later in life. 
  • Talk with your financial professional to see if this a good option for you. With the recent tax law changes, many people may find themselves in a lower tax bracket this year.
  • Although you don’t get upfront tax breaks on a Roth IRA, your withdrawals are tax-free as long as you are older than 59 ½. 

BE THANKFUL FOR CUSTOMIZED RETIREMENT STRATEGIES

  • Having a plan in place to build your retirement savings is crucial. The biggest concern we hear from our clients is they are afraid they will run out of money in retirement. 
  • Start thinking about what you want to do, from trips to daily expenses, and how much that is going to cost you.

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